Adelaide Energy Limited (ASX:ADE) Encounter-1 Weekly Drilling Report Ended 14 December 2010
Adelaide Energy Limited (ASX:ADE) Encounter-1 Weekly Drilling Report Ended 14 December 2010

Adelaide, Dec 14, 2010 AEST (ABN Newswire) - Adelaide Energy Limited (googlechartASX:ADE) is pleased to release Encounter-1 weekly drilling report ended 14 December 2010.

Well name: Encounter-1

Permit: PEL 218 (Permian JV)

Participants: Beach Energy Limited (googlechartASX:BPT) (googlechartPINK:BEPTF) - 90% (Operator); Adelaide Energy Ltd (ADE) - 10%

Primary targets: Roseneath/Epsilon/Murteree shale/sand/shale sequence ("REM" unit)

Spud date: 3 October 2010

Target depth (prognosed): 3625m

Total depth @ end of current week: 3586m

Total depth @ end of previous week: 3462m

Metres drilled during week: 124m

Mud weight - lbs per gallon (ppg): 13.6

Current formation: Patchawarra

Activities during week: Drill 8 1/2 hole from 3462m to initial TD; run electric line logs - revise TD: drill ahead to Murteree core point and cut/retrieve core - drill ahead

Current activities: Drilling ahead in Patchawarra

Planned activities: Drill ahead to final TD in Patchawarra - log bottom section - run production casing

Other comments: Formation Thickness, m (preliminary) Roseneath: 194; Epsilon/Murteree: 194 (estimate); Total REM: 388 metres

Commenting on the progress of the well, ADE's Managing Director, Mr Carl Dorsch, said:

"Encounter-1 has to date provided us with enormous encouragement as to the potential of the shale gas exploration play in the Nappamerri Trough. The much larger thickness than anticipated of the Roseneath Shale that was announced last week provides both the potential for considerably larger gas in place numbers and greater ease of stimulating the production of this gas.

The very high mud weights required for the safe and controllable drilling of the well (13.6 ppg rather than 9.0 ppg) together with the constantly high gas shows encountered both prior to and within the primary targets point to large overpressure and/or a high concentration of in situ gas. Either or both scenarios indicate a significant amount of gas in the system.

We look forward to the well reaching target depth and the results of the various testing programs which will provide more data on this well over the coming weeks and months."

Contact

Carl Dorsch
Managing Director
Adelaide Energy Limited
Mob:+61-0400-508-088
Email: c.dorsch@adelaideenergy.com.au

Neil Young
Chief Commercial Officer
Adelaide Energy Limited
Mob: +61-0417-850-245
Email: neil.young@adelaideenergy.com.au

http://www.adelaideenergy.com.au



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